Which entities are responsible for approving or denying an Arranged Interchange?

The correct answer is that the approval or denial of an Arranged Interchange falls under the responsibility of both involved Transmission Service Providers and Balancing Authorities. This is essential because these entities play critical roles in ensuring reliable, efficient operation of the power grid.

Transmission Service Providers manage the transmission infrastructure and ensure that the physical capacity needed for the interchange is available. They assess whether the transmission lines can handle the additional load or if any constraints need to be considered to safely accommodate the interchange.

Balancing Authorities, on the other hand, are responsible for maintaining the balance between generation and load within their geographical area. They oversee the reliability of operations and need to verify that the proposed Arranged Interchange will not jeopardize system stability.

Together, these two entities evaluate the operational impacts of the interchanges and take into account factors such as system reliability, existing commitments, and potential constraints. This collaborative approach ensures that all aspects of the power system are considered when determining whether to approve or deny an arranged interchange.